South Korean Economic Growth Forecast Revised Upward to 1.9%
South Korea’s economic growth forecast for 2026 has been slightly increased to 1.9% from 1.8%, according to a recent report by the Korea Development Institute (KDI). The upward revision, reported on February 11, 2026, reflects strengthening semiconductor exports and a recovery in private consumption.
The KDI initially projected a 1.8% growth rate, but adjusted the outlook following positive trends in key economic indicators. This adjustment marks a 0.1 percentage point increase. The semiconductor industry’s strong performance is a key driver of the revised forecast, as highlighted in reports from The Chosun Biz and MSN.
Even as exports, particularly in the information and communication technology (ICT) sector, have shown robust growth, domestic consumption remains relatively weak, according to a KDI economic assessment from August 2024, available here. This imbalance continues to pose a challenge to broader economic improvement.
KDI’s Executive Director Jeong-cheol Jung indicated that the nation’s potential growth rate for the year is estimated at 1.6% and that additional supplementary budgeting is not currently deemed necessary, as reported by Newsis.
Despite the positive revision, KDI also noted that the volume of exports is expected to see some adjustment, and manufacturing production is anticipated to experience a slight decrease, according to MBC News. The semiconductor sector continues to demonstrate strong momentum, while construction activity remains sluggish, as highlighted by News1.
